Separately managed network entity with virtualized transport function

An optical network device comprising:

• a first port configured to receive and connect to an optical transceiver;
• a second port configured to connect to a server configured to remotely manage the optical transceiver through the optical network device;
• and
• a management engine comprising a service agent configured to communication with the server the optical transceiver to configure an IP interface between the server and optical transceiver and enable performance of virtualized transportation function;
• wherein the service agent is configured to:
• discover a connection of the optical transceiver with the optical network device through the first port that comprises a pluggable interface;
• and
• establish an Internet Protocol connection between the optical transceiver and an optical transceiver controller of the server.

An optical network device comprising:

• a service agent processor configured to enable performance of virtualized transportation functions and to establish an Internet Protocol connection between an optical transceiver and a server that is configured to remotely manage the optical transceiver,
• a first communication channel configured to provide a data path of exchanging data between the optical transceiver and an optical transceiver controller of the server;
• and
• a second communication channel configured to provide a second path for communicating management and settings information between the optical transceiver and the optical transceiver controller of the server;
• wherein the virtualized transport functions comprise one or more of bandwidth management, network topology management, or optimizing performance of an optical network connected to the optical network device.